IRS Stands On The Throat Of Medical Marijuana


This calls for wisdom.  Let the person who has insight calculate the number of the beast, for it is the number of a man.  That number is 666.. Revelations 13: 18



The eyes of the American pot smokers were on L.A. this week, as the war against marijuana consumption fired back up – L.A. City Council throws the second punch, in the stepped marijuana fight between common sense… and blind ignorance.

Turns out… that could be the least of everyone’s worries?

At least that is how Steve DeAngelo sees it, and he’s not alone. It looks like The cruel and black-hearted internal revenue service has found a new tool in its attempt to stand on the throat of the MMJ collectives, thereby choking them out, and them shutting down. California’s largest medical marijuana dispensary is facing the fight of its life …and with it – potentially the entire medical marijuana industry.

As Steven D’Angelo of the Harborside MMJ collective, located in the East Bay can now attest, the IRS are deadly serious about collecting their taxes, regardless if they are unjustified and meant to be punitive. Most may recognize Stevie “D” as being someone that participated with his collective in the discovery channel show about marijuana collectives called “Weed Wars.” Little did Mr. DeAngelo know how prophetic that title would be? The IRS has now claimed that Harborside currently owes the IRS $2,5000,000 million dollars in back taxes for 2007 and 2008.

The premise under which the IRS is coming back at Harborside on their perfectly filed tax returns for ‘07’ and ‘08’… is that the I.R.S. has decided that the federal law that prohibits organizations from trafficking in a scheduled one controlled substance also disallows any business from taking tax deduction for normal business items such as insurance, workers compensation, payroll and the likes. So what this means, is that in addition to the $500,000 that Harborside paid the federal government for both of those years (+ $1 million to the city of Oakland); the recent IRS crusade of hostile audits against medical marijuana collectives – is there new weapon of choice. By utilizing Section 280E, the IRS hopes to crush the mmj wolrd by denying them the ability to deduct legitimate business expenses.

Stephen D’Angelo’s, Harborside marijuana collective for the year of 2010, made over $22 million in revenue. As one of the larger marijuana collectives in the United States Harborside has approximately 94,000 patients that they see on a regular basis.

With this latest ruling, the IRS is sending a shot across the bow of the medical marijuana industry? Is this a tactic that they will be using going forward, trying to bring down an industry that they fear and loath? While the Fed’s try and back-door big Pharma into the mmj market with their own cannabinoid patent?

Other victims of the IRS…

The very first proprietor of a U.S. medical marijuana collective… Now Broke And Fighting the IRS.

Lynnette M. Shaw, the colorful weed activist who opened the first licensed medical marijuana dispensary in the United States, now is in the fight for her life with the Internal Revenue Service. They claim she owes $1.27 million in back income taxes. She has now been forced into personal bankruptcy, Noting: $276,000 in state sales taxes among her debts.

Next up … El Camino Wellness Center, considered the largest medical marijuana provider in Sacramento. The Internal Revenue Service seized their bank accounts taking more than $870,000 … a federal probe “alleged money laundering” involving a Sacramento marijuana dispensary.

The problem for the dispensaries is that the law is very clear here, and the IRS is likely correct in assessing the tax. It doesn’t matter that medical marijuana is legal in California–federal tax law is black and white on this issue. While I expect the probable losses in Tax Court to be appealed to the 9th Circuit Court of Appeals, the dispensaries appear to me to be in a losing battle. [source]


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  1. It infuriates me to think about all of the Governments bullying tactics. Pharma wants exclusivity and it will eventually get it. When that happens, I believe that people will finally wake up and finally fight.

  2. King Barry will save the day here before November rolls around. Pandering to gays, illegal immigrants and the mmj community should seal up 4 more years of lies and rounds of golf. Maybe they r eliminating any competition before the gov unleashed it’s thc pills on us.

  3. I don’t understand how people can be so close minded. Haven’t they heard of giving someone a chance? They’ve released so many chemically based substances recently such as spice or bath salts etc and deemed them legal and yet they aren’t capable of taking their old mans dildo out their ass and calling it a night and accepting this plant for what it truly is, that being a medicine? How long has this substance been out and about for? People have been able to date back cannabis since the 3rd millennium BCE and there have been zero and yes i mean 0! cannabis related deaths recorded! And yet the still claim that this drug is as dangerous as those other seriously dangerous and harmful drugs categorized as well in Schedule 1.

    My dear politicians, DEA employees, and the F*CKING FEDS!

    Marijuana isn’t killing people, you are.

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